Yes - Wait!!!
In November Microsoft will be releasing Office 2003, then "Next" office suite. Wait till then and pick up Office XP cheaper as the price comes down. You could always try out Office 2003 Beta which I have at the moment but it is so good you will end up forking out the full wack for it when it is released!
As to xp, noting doing unless you are a student or have kids at school/college then you can get the Windows XP Professional edition for only £58.00 Incl VAT & Del!!